How to Build Unicorns in Africa: Lessons from Coen, CEO of TymeBank

In a rare feat for an African company,?Tyme Group, which includes Tyme Bank has achieved a valuation of over $1.5 billion, cementing its place as one of the continent's most successful financial institutions.

During my recent conversation with Group CEO Coen Jonker, we explored the remarkable journey of this digital-first neobank and unearthed lessons that can inspire entrepreneurs and innovators across Africa.

Below are a few snippets from that conversation...

The Key to Scale: Partnerships and Collaboration

Coen started by referencing an African proverb:?“If you want to go fast, walk alone; if you want to go far, walk together.”?This ethos underpins TymeBank’s success.

From the outset, TymeBank has leveraged partnerships with major retail chains like Pick n Pay, Boxer and TFG in South Africa to deploy lightweight digital kiosks inside stores.

These kiosks not only reduce the cost of customer acquisition to an industry-leading $4 per customer but also build trust by embedding banking services into customers' daily lives.

In emerging markets, trust is everything. By associating its brand with trusted retailers, TymeBank accelerated adoption and demonstrated how embedded finance can redefine the customer experience.

10x Thinking and the Power of Purpose

Coen credits much of TymeBank’s innovative model to the influence of?C.K. Prahalad’s?book?"The Fortune at the Bottom of the Pyramid."?

The aim?

To provide banking services at a fraction of the cost to ten times as many people. TymeBank achieves this by operating entirely paperless and cashless systems while leveraging data and technology to meet customer needs in real-time. For example:

• Three-Minute Onboarding:?Customers can open accounts and walk away with a Visa debit card in minutes at a kiosk.
• Instant Loans:?Small businesses can access merchant cash advances in three clicks based on real-time data analysis, without cumbersome paperwork.

Radical Leadership and Culture

TymeBank’s culture is as innovative as its product offerings. Here are a few standout practices:

1. Leadership Rotation:?Coen and other senior leaders regularly rotate roles to apply their strengths where most needed and keep the organisation agile.
2. Encouraging Risk:?TymeBank actively encourages employees to make mistakes in safe zones. For example, budgets are allocated for experiments, with an emphasis on learning from failures.
3. "Care and Growth" Philosophy:?Leaders focus on developing great people through challenging results, blending tough love with genuine care for employees’ growth.

Challenges for Incumbents

Despite their vast resources, traditional banks struggle to replicate models like TymeBank’s due to rigid structures, siloed data, and resistance to change.

Coen summarized it well:?"If you can deliver a better customer experience at one-tenth the cost, legacy banks simply can’t compete unless they start fresh."

Looking Ahead: Digital Banking in Emerging Markets

Coen predicts that by 2030, the most successful retail banks will be digital-first. He believes that the sweet spot lies in digital banks with the balance sheet advantages of traditional banks and the agility of fintechs. Emerging markets like Africa and Southeast Asia, where customers are underserved by incumbents, are fertile ground for this transformation.

Building Africa’s Next Unicorns

TymeBank’s journey highlights several lessons for African innovators:

• Start with?customer trust?and accessibility.
• Embrace?technology?to reduce costs and scale rapidly.
• Foster a?culture of experimentation?and resilience.
• Focus on?collaboration?to unlock new opportunities.

Africa’s potential for creating unicorns is vast. With the right mix of innovation, partnerships, and bold leadership, the next wave of billion-dollar companies could emerge from this vibrant continent.

What are your thoughts on TymeBank’s model? Do you think digital-first approaches will dominate in Africa? Share your insights below!